The controller received the following information from the marketing department about anticipated demand for the firm's products in the upcoming year:

Department: Total Professional Hours:

Information Technology 32,000

General Business 40,000

The controller then worked with the human resources department to determine the following information about staffing and salary rates for each department:

Information Technology / General Business

Ratio of partner hours: senior

consultant hours: junior

consultant hours 1:2:7 1:2.5:6.5

Salary Rates per hour:

Partner $150 $125

Senior Consultant $75 $60

Junior Consultant $40 $30

The controller has also determined that in order to be profitable, billing rates should be three times the amount paid to employees. The marketing department has determined that billing rates computed on that basis are comparable to what

other consulting firms charge.

(a) Prepare a revenue budget for Domino Consulting Company.

(b) Prepare a labor budget for Domino Consulting Company